CSOP launches Vietnam ETF in Hong Kong | ETF Strategy

CSOP Asset Administration has launched a brand new ETF in Hong Kong offering broad market publicity to Vietnamese equities.

The IMF forecasts that Vietnam will probably be one of many fastest-growing Southeast Asian economies over the subsequent few years.

The CSOP FTSE Vietnam 30 ETF (3004 HK) has been listed on the Inventory Trade of Hong Kong with an annual administration payment of 0.99%.

Ding Chen, CEO of CSOP Asset Administration, commented: “Leveraging our time-tested ETF administration experience, CSOP is assured to introduce this Vietnam-themed ETF product to Hong Kong traders. We sit up for bringing extra new idea ETFs to Asia with numerous cost-effective choices for traders to diversify their portfolios.”

In response to the Worldwide Financial Fund, Vietnam was the one Southeast Asian nation to realize optimistic financial development for the 2 most up-to-date amid Covid-19.

The IMF additionally forecasts that Vietnam will probably be one of many quickest rising economies in Southeast Asia over the subsequent few years, highlighting the nation’s steady inflows of overseas direct funding, secure home political setting, and favorable demographic construction as supporting components.

Methodology

The fund tracks the FTSE Vietnam 30 Index by using a mix of bodily and artificial replication strategies.

The index includes the 30 largest Vietnam-domiciled firms that commerce on the Ho Chi Minh Inventory Trade. Constituents are weighted by market capitalization topic to a single inventory cap of 10% to be able to promote diversification.

As of the tip of August, shares from the actual property sector accounted for one-third (33.8%) of the index weight whereas meals, beverage & tobacco firms made up round one other quarter (22.5%). The following-largest sector exposures have been banks (9.4%), industrial items & providers (8.9%), and monetary providers (8.0%).

Notable positions included Masan Group (11.3%), Vinhomes Actual Property Funding and Providers Growth (9.5%), Vingroup JSC Actual Property Funding and Providers Growth (9.5%), Vietnam Dairy Merchandise JSC Meals Producers (8.4%), No Va Land Funding Group Actual Property Funding and Providers (8.3%), Hoa Phat Group JSC Normal Industrials (7.4%), and Joint Inventory Business Financial institution for International Commerce of Vietnam Banks (4.8%).

The index returned 19% in 2020, which doubled to a 38% return in 2021, evaluating favourably to the 0.9% loss and 26.1% achieve for the broader FTSE Frontier Index over the identical durations.

Vietnamese shares have underperformed different frontier markets to this point this yr, nevertheless, with the index registering a lack of 22% (as of the tip of August) in comparison with -14.5% for the FTSE Frontier Index.